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CalculatorBuddy

Average Return Calculator

Calculate a dated investment return from deposits and withdrawals, or cumulative and annualized returns across multiple holding periods.

Average Return Based on Cash Flow

ExampleSample values — edit any field to see your result.

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Average Return

12.18%per year

Estimated result

Average Return12.18% per year
Calculate annualized performance from dated balances, deposits, and withdrawals, or combine as many as 60 returns with different holding periods.

Formula

The dated mode solves the annual rate that makes the present value of all dated cash flows zero. The series mode calculates cumulative growth as Π(1 + rᵢ) − 1, then annualizes it over the total number of months.

Examples

Three return periods

Returns of 10%, −2%, and 15% compound to 51.78%. Across a combined 3 years 10 months, that equals an average 11.50% per year.

Frequently asked questions

How are deposits and withdrawals handled?
Deposits add invested capital and are treated as outflows; withdrawals return capital and are treated as inflows.
Is average return the arithmetic mean?
No. The calculator compounds each return and annualizes the total result over the combined holding period.
Why do transaction dates matter?
A deposit held for three years affects performance differently from the same deposit made shortly before the ending date.

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